Dublin, May 31, 2024 (GLOBE NEWSWIRE) -- The "United States Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
BNPL payments are expected to grow by 14.8% on an annual basis to reach US$ 109.00 billion in 2024. The medium to long-term growth outlook for the BNPL (Buy Now, Pay Later) industry in the United States remains robust, with an expected CAGR of 9.5% from 2024 to 2029, driven by increasing consumer adoption amid high inflation. However, The CFPB has issued a rule ensuring that BNPL providers offer consumer protections similar to credit card providers, including the right to dispute charges and obtain refunds which may hinder future expansions, as the BNPL market value is projected to rise from $94.94 billion in 2023 to $171.59 billion by 2029
The adoption of BNPL schemes has been on the surge in the United States. According to a report from Adobe Analytics, a record number of holiday shoppers were expected to use the payment method for Cyber Monday shopping, to lessen the inflationary stress on their wallet. Online shoppers were expected to spend somewhere between US$12 billion and US$12.4 billion. Interestingly, around US$782 million of these purchases will be made using services like Klarna and Affirm. This represents an increase of almost 19% compared to last year, according to Adobe Analytics.
The adoption has been increasing even at a time when most BNPL firms are moving away from zero-interest payment models to interest-bearing installment loans. Affirm, one of the leading firms in the sector, announced that 74% of their gross merchandise volume in Q3 2023 consisted of interest-bearing loans. This shows the growing popularity of the BNPL payment method among the United States consumers. The publisher expects the trend to further continue in 2024, supporting the growth of the broader industry from the short to medium-term perspective.
New firms are piloting the BNPL payment method to tap into the growing demand for the solution
The BNPL industry is poised to record steady growth over the next three to four years, amid higher adoption and usage of the payment tool. Consequently, to tap into the growing market, more players are entering the sector with their own BNPL payment service.
Google Pay, for instance, announced strategic partnerships with Zip and Affirm to offer its users with a BNPL payment option. The partnerships, announced in December 2023, will see the rollout of the payment solution across the United States in 2024. The integration with Zip will begin in January 2024 under the pilot project. Affirm, on the other hand, will be made available on Google Pay during Q1 2024. Google Pay, over the medium term, is planning to launch the installment payment tool to its global user base.
Google Pay's competitor, Apple, has already launched the payment method for consumers in the United States in 2023. The entry of Google Pay, in the US BNPL industry, is set to drive the competitive landscape in the fast-growing market over the medium term. The growing competition is, therefore, expected to aid innovation in the industry over the next three to four years.
Firms are forging strategic alliances to further widen the distribution of their BNPL product offering in the United States
The demand for BNPL has been growing consistently over the last 12 months and the trend is projected to further continue in the United States market over the medium term. Consequently, to serve more shoppers and increase their gross merchandise volume, firms are entering into strategic partnerships to widen the distribution.
Zip Co., the Australian BNPL firm and one of the leading players in the United States, entered into a collaboration with Primer in September 2023. The partnership is part of the firm's strategy to further increase its penetration in the United States market over the medium term. Under the collaboration, Primer will integrate the BNPL offering of Zip, thereby empowering merchants from sectors such as retail, travel, and fashion among others.
Key Attributes:
Report Attribute | Details |
No. of Pages | 88 |
Forecast Period | 2024 - 2029 |
Estimated Market Value (USD) in 2024 | $109 Billion |
Forecasted Market Value (USD) by 2029 | $171.6 Billion |
Compound Annual Growth Rate | 9.5% |
Regions Covered | United States |
Scope
United States BNPL Market Size and Spending Pattern, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later Revenue Analysis, 2020-2029
- Buy Now Pay Later Revenues
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Revenue by Merchant Commission
- Buy Now Pay Later Revenue by Missed Payment Fee Revenue
- Buy Now Pay Later Revenue by Pay Now & Other Income
United States Buy Now Pay Later Operational KPIs & Statistics, 2020-2029
- Buy Now Pay Later Active Consumer Base
- Buy Now Pay Later Bad Debt
United States BNPL by Purpose, 2020-2029
- Convenience - Short Term Loans
- Credit - Long Term Loans
United States BNPL by Business Model, 2020-2029
- Two-Party (BNPL offered by retailers)
- Three-Party BNPL Offering
United States BNPL by Merchant Ecosystem, 2020-2029
- Open Loop System
- Closed Loop System
United States BNPL by Distribution Model Analysis, 2020-2029
- Standalone
- Banks & Payment Service Providers
- Marketplaces
United States Buy Now Pay Later Market Share Analysis by Key Players
United States BNPL Analysis by Channel, 2020-2029
- Online Channel
- POS Channel
United States Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later in Others: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
United States Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Sales Uplift by Product Category
- Share by Age Group
- Share by Income
- Share by Gender
- Adoption Rationale
- Average Monthly Expense segments
For more information about this report visit https://www.researchandmarkets.com/r/1x0ccq
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